Car insurance: if you don’t use your phone while driving, you pay less

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The US company Allstate offers discounts on car insurance for those who do not use the phone while driving and higher policies for distracted and dangerous motorists. Would it also work in Europe?

In the United States, a Suncoast system is being tested to reduce the cost of car insurance for those who do not use their phones while driving. Thanks to the data transmitted by smartphones, companies know exactly who respects the rules and who does not.

Car insurance: discounts for those who do not use their mobile phones

Using cell phones while driving is a major cause of distraction. The distraction causes a large part of road accidents, with very serious consequences.

 

The rules that prohibit telephoning or texting while driving are already in place, but not all motorists comply with them. In the United States, the Allstate insurance company has come up with a reward system for disciplined motorists.

Allstate’s idea is simple and effective: study the driving habits of motorists and reduce the car insurance premium for those who respect the rules. 

Car insurance: personalized policies thanks to big data

Thanks to the use of an app connected to the smartphone, the company was able to monitor the movements of the phones and understand whether they were in use or not while traveling by car.

 

The analysis was conducted on 160 million journeys and confirmed what is easy to guess: using the phone while driving significantly increases the risk of accidents.

According to an analysis by Allstate and its subsidiary Arity, drivers who succumb to the temptation to call or chat cost the company 160% more than drivers who keep a safe distance from their phones. Hence the idea of ​​using technology and metadata transmitted by smartphones to calibrate the car insurance premium.

By being able to accurately estimate the risk associated with each driver, companies will be able to offer customized and fairer policies than now. This would prevent drivers who comply with the rules from paying the higher price necessary to cover the costs caused by unruly drivers.

The use of big data would not only be of benefit to motorists, but also to insurance companies who could identify with certainty the best and worst customers.

Do you think that this system that makes unreliable motorists pay more and rewards those who do not use the phone while driving would also work in Europe?